PSI Oklahoma Real Estate Practice Test

What type of agents are authorized to conduct a series of transactions on behalf of clients?

1. Limited agents

2. Special agents

3. General agents

4. Sub-agents

The correct answer is: General agents

The concept of general agents is key in understanding their authority to conduct a series of transactions on behalf of clients. General agents are empowered to act on behalf of a principal in a broad range of activities. This authority is typically outlined in a contractual agreement and allows the general agent to perform numerous transactions or functions related to the principal's business or affairs. In real estate, for instance, a general agent might manage property, negotiate leases, or market a property. This contrasts with special agents, who are limited to performing specific tasks or transactions as defined by the principal, such as representing a seller in a single property sale. Limited agents also have restricted authority based on specific actions agreed upon, while sub-agents operate under the authority of another agent, representing the interests of the principal indirectly. Understanding these distinctions helps clarify why general agents are particularly suited for situations where ongoing representation and a broader scope of authority are required.